Investing in Social Housing via Crowd Funding
1.8 million Needy households are on the waiting list*
Since we launched the two Social Housing investments last week via crowd funding, a number of people have contacted us to ask whether it is right we should profit from other people’s misfortune – and it’s a great question that most of us would respond “Of course not!” to.
But looking at it that way is focusing on the problem, not the solution. Andrew and his team, and hopefully you as a CrowdLords Investor are helping by providing a solution via their crowd funding site. Perhaps to see the difference we need to think a bit more about the problem.
Social housing is accommodation let at low rents to those most in need of a stable, affordable home. According to Shelter, the waiting lists for social housing have never been longer – there are more than 1.8 million households in England on the waiting list for a home. There simply aren’t enough suitable properties. Crowd Funding could be a solution.
With numbers as high as this it’s easy to think that the two properties below (and the next 50 or 100 we could fund through CrowdLords) is not going to even scratch the surface. But for the 9 households that could occupy these two houses and the 400 or so we could potentially house in the next year it makes all the difference.
But should we profit? It’s like asking whether commercial organisations should ever be used to help deliver social or community services. Of course we should (as long as it is not excessive) otherwise the investment required to create these properties would simply go elsewhere. The investment case has to stack up.
We believe the investment case for these properties is particularly strong:
These HMOS are being sourced Below Market Value so they have inherent value
These HMOS are contracted for 5 years and so will have zero voids – the biggest concern for HMO style properties
These HMOS are fully managed including full maintenance – which reduces the operational costs
These HMOS are returned to post renovation condition at the end of the contract
These HMOS deliver above average yields which results in annual Dividends of above 6% – how many secured investments can you find that beat that?
BH Properties have converted 17 properties over the last 12 months and are looking to develop a long term partnership with CrowdLords to help fund their expansion. It’s worth noting that because the management and maintenance of these properties are included in the contract, Andrew and his team have agreed to payout a 100% share of both income and growth to investors. Watch the video clip below to hear more about why they think this is a good area to invest in.
The first two HMO properties are already renovated and contracted and are being refinanced to release capital to accelerate the acquisition of further properties.
https://youtu.be/0rbAUyftFHk
CrowdLords Limited is an appointed representative of Oxygen Ventures Limited, which is authorised and regulated by the Financial Conduct Authority (No 208188). CrowdLords Limited is registered with the Financial Conduct Authority (No 656561).
Investment in property comes with risks as well as the possibility of rewards. These investments should be considered to be long term
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